North Carolina Down Payment Support Programs

Online Payments - The North Carolina Housing Finance Agency has two great plans for First Time Home Buyers. These systems are the Mortgage Credit Certificate as well as the deposit Assistance Program.

You purchase a home and December 1, 2009 and should you meet the requirements for one of these programs, you could also be eligible for the $8,000 tax credit only enacted into law.

First, who's a first-time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a house in the past three years. It is precisely the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction.

You'll be able to claim 20% of the interest you pay on your own mortgage as a credit on your federal income taxes, should you qualify for the MCC. It's possible for you to save around $2,000 on your taxes.

You will manage to unite this if you do qualify for 2009. This might reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on your income and the price of the house you're buying. Household income is defined as the “gross income of the mortgagor and every other man expected to live in the home who's 18 years of age or older.”

House price limits that apply in Durham Orange and Chatham Counties and the income are listed below.

MCC Income Limitations 1 Person $61,500 2 Men $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Price Limitations New House $220,000 Existing House $210,000

Home buyers that want help with their down payment and closing costs might be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The purchaser only has to pay $1,000 of their own funds and the load would pay around $8,000 of the remaining balance.

This program has stricter income limits than the MCC program outlined above. Like the MCC program, it can be utilized in conjunction with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit assistance, nevertheless, cannot be employed in combination together with the MCC. This is an either or situation.

House price limits that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Persons $45,650 3 Individuals $51,350 4 Men $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing House $210,000